According to the Net Present Value Rule, an Investment in a Project

question 100

Multiple Choice

According to the net present value rule, an investment in a project should be made if the:

• A)net present value is greater than the cost of investment.
• B)net present value is greater than the present value of cash flows.
• C)net present value is positive.
• D)net present value is negative.

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Definitions:

Reward

Something given in recognition of service, effort, or achievement, serving as a form of motivation or incentive.

Punishment

A method employed to reduce or eliminate undesirable behavior by imposing penalties or adverse consequences.

Independent Variable

The variable in an experiment that is manipulated to observe its effect on the dependent variable.

Theoretical Stimulus

An abstract concept or idea used to provoke or explore psychological responses or behaviors in theoretical models.